DFS full-year profits rise; plans higher dividend

Furniture retailer DFS Furniture PLC (DFS:LN) posted higher fiscal 2016 earnings and said it would be in a position to return more cash to shareholders next year. DFS said pretax profit in the 52 weeks to July 30 rose to 64.5 million pounds ($82.0 million) from GBP10.7 million a year ago.

Revenue increased 7.1% to GBP756.0 million from GBP706.1 million and the company proposed a final dividend of 7.5 pence a share, giving a total of 11.0 pence for the year, an 18.3% rise on the 9.3 pence paid a year earlier.

Chairman Richard Baker said: “Given the strong progress in reducing our financial leverage and current positive trading momentum, the board is also pleased to confirm it currently expects that the business will be in a position, at the interim results in March 2017, to announce a further special capital return to shareholders anticipated to occur prior to the current financial year end in July 2017.”

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